Breaking News
Renting for lifestyle
Kathryn Welling
9 May 2008
THE Jackson family of Narraweena are about to kiss goodbye to their mortgage in order to become long-term renters.
Concerned by high interest rates, they are selling their three-bedroom family home and intend to become renters in the same suburb.
The Jacksons are typical of a growing number of home owners who cannot afford their mortgage but, instead of moving to a cheaper area, are prepared to sell in order to keep their lifestyle.
"We love the area and the sense of community here we just want to sit back and consider our position, look at our finances and do what is best for our young family," Mrs Jackson said.
They are fairly typical of a new generation who are opting to rent rather than buy, according to a new CB Richard Ellis ResiLine (CBRE) report released yesterday. According to the report, this growing number of Generation X and Y renters are being partly blamed for the latest rent squeeze that is seeing rents climb for the sixth straight quarter, and one of the lowest vacancy rates in decades.
According to another NSW Housing report released yesterday, rents have climbed more than 10 per cent across most of Sydney in the March quarter.
In the rental market, CBRE is forecasting that, with dwelling approvals at record lows, Sydney rents could rise by a further 10 per cent this year.
CB Richard Ellis said the median weekly rent for an apartment in Manly was now $515, compared with $455 a week for a unit in Narrabeen and $385 a week in Dee Why. Doyle Spillane, which has one of the biggest rent rolls on the peninsula, now has a less than 1 per cent vacancy rate.
Tim Bentley, of Belle Property, said the younger generations were more job transient and less inclined to listen to their parents who held onto the Australian dream of home ownership.
And Robert Klaric, of Klaric Partners, said young people could afford $400 a week rent but didn't want to pay $700 a week in mortgage repayments.
We welcome your comments on this story. Comments are submitted for possible publication on the condition that they may be edited. Please provide your full name. We also require a working email address - not for publication, but for verification. The location field is optional. Read our publication guidelines.
Submit your feedback here:
- Teacher sacked for posing nude
- Sausage glass: pet owners panic
- Ex-cop denies 'rip-off'
- Change to bus route worries travellers
- Renting for lifestyle
- Correction
- Shhh! Orchestra in training
- Council says sorry for DA home bungle
- 'No plastics' plan catches on up north
- Miller greets media frenzy
- Council war on graffiti
- Local who has four Arias, with more to come
- Pile-up caused by drink- driver
- Just one more job for busy Lizzie
- Residents in night search for pet baits
- Hole lotta mystery going on
- Baird pays $260,000 to take seat
- Man faces court over home attack
- Netball home option gets joint support
- Who could be so heartless?
